How does operating analysis differ from financial statement analysis?

Operating analysis primarily concentrates on the internal processes and efficiency of a healthcare organization, examining how well it manages its day-to-day operations to achieve its objectives. This analysis looks at metrics like patient throughput, staff productivity, and operational costs.

In contrast, financial statement analysis presents a broader view, focusing on the financial health of the organization through its financial statements, such as the balance sheet and income statement. This can include benchmarking against other organizations to assess performance relative to peers and industry standards.

By indicating that operating analysis does not utilize benchmarking, the choice highlights a key distinction: operating analysis is more internally focused, evaluating how effectively an organization operates without direct comparison to external standards.